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FTSE higher despite signs of economic turmoil

by LLB Reporter
16th Aug 22 10:56 am

The FTSE 100 enjoyed steady gains despite continuing signs of economic turmoil in the UK.

In a sign of the weaker backdrop, the number of job vacancies fell for the first time in two years, although it is not a clear picture, with serious issues filling roles in certain sectors.

This makes life difficult for the Bank of England as it looks to bring down rampant inflation without inflicting too much pain on businesses and households.

“The other major takeaway from today’s figures is the biggest real terms pay fall on record. This drop in spending power is bad news for consumer-facing businesses,” says AJ Bell financial analyst Danni Hewson.

“Inflation is a positive for some though – miner BHP reported record first half profit as the price of commodities soared earlier in 2022.

“However, these numbers are in the rear-view mirror; of more interest is BHP’s expectation for a big rebound in resource-hungry China. BHP’s excitement about improving Chinese prospects is at odds with the more sober commentary delivered by many of its rivals.

“It’s been a torrid time for fashion retailer Ted Baker but beneath all the scandals and sorry trading performance there is clearly some value remaining in the brand.

“US Authentic Brands Group, which previously purchased Reebok among other names, clearly thinks the brand has something to offer as it has decided to swoop for the business in a cut-price deal.”

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